Bank of Japan Gov. Haruhiko Kuroda said Thursday any future debate on an exit from ultraloose monetary policy will center on the pace of increase in short-term interest rates and adjustments in the bank's massive balance sheet.

Kuroda brushed aside the chance of a near-term interest rate hike, stressing that the BOJ must continue to underpin a fragile economic recovery with loose monetary policy.

But he said the BOJ can debate an exit strategy from its massive stimulus and head toward policy normalization when achievement of its 2% inflation target, accompanied by wage increases, comes into sight.